P&G Reorganization, Microsoft Busts Cybercrime: Morning Buzzers
U.S. stock futures have risen this morning, a sign that the S&P 500 will recover from a one-month low. A jobless benefit claims report was released this morning, saying that seasonally-adjusted claims for unemployment insurance fell by 11,000 in the week ended June 1 to 346,000, although the four-week moving average edged up slightly to 352,000. Investors are also waiting to hear the results of the employment situation report that will be released tomorrow.
Futures at 8:30 a.m.: DJIA: +0.20% S&P 500: +0.35% NASDAQ: +0.26%
Here’s what’s buzzing on Thursday morning:
Proctor and Gamble (NYSE:PG) has announced plans to reorganize the company into four separate units, which will be Global Baby, Feminine, and Family Care; Global Beauty; Global Health & Grooming; and Global Fabric & Home Care. The company will be placing different executives in charge of the units and will use their performances to determine who will be a good fit to succeed current CEO A.G. Lafley. The executives will report directly to Lafley, who reprised his role as CEO two weeks ago, and analysts are looking at the move as a contest to determine who will be the next CEO of the company. P&G shares climbed 0.21 percent in after hours trading on Wednesday.
Amazon.com Inc. (NASDAQ:AMZN) executive Russell Grandinetti has testified at Apple’s (NASDAQ:AAPL) e-book trial, saying that publishers colluding with Apple to raise the price of e-books forced Amazon to abandon its pricing structure for books sold on its Kindle e-readers and tablets. After negotiations with publishers, who threatened to withhold books if Amazon didn’t raise prices, Amazon scrapped its pricing model for the one the Justice Department is accusing Apple of forcing on the e-book industry. In his testimony, Grandinetti said, ”It was our belief that the reason we were in this situation was that some of the publishers wanted to slow the sale of the Kindle.”
Microsoft (NASDAQ:MSFT) has been working with the FBI to crack down on one of the internet’s biggest cybercrime rings. In partnership with the FBI and authorities in 80 different countries Microsoft has helped close 1,000 out of an estimated 1,400 malicious networks called Citadel Botnets. The crime ring is thought to be responsible for stealing over $500 million from accounts at financial companies including JPMorgan Chase (NYSE:JPM), American Express (NYSE:AXP), and PayPal (NASDAQ:EBAY). It’s estimated that Citadel infected nearly 5 million PCs worldwide.
Verizon (NYSE:VZ) has been ordered to provide records of calls made within or originating from the U.S. for a three-month period to the National Security Agency. The contents of phone conversations will not be covered, but Verizon has to give the NSA information on location data, call duration, and numbers of parties on each call. A senior official from the Obama administration said that the information is, “a critical tool in protecting the nation from terrorist threats.”
The Humble EcoBoost Drives Ford to Greatness: While being the proud receiver of the International Car of the Year award is the top accolade for any auto manufacturer, being the creator and producer of the International Engine of the Year is nothing to sneeze at either. More impressively, Ford (NYSE:F) has now been the recipient of this award for the second consecutive year. The company’s 1-litre, three-cylinder, turbo-charged EcoBoost engine was bestowed with the honor for the second time on Wednesday, according to the European arm of the company… (Read more.)
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